News: Global payroll systems fail to keep up with changing work dynamics: Study

Compensation & Benefits

Global payroll systems fail to keep up with changing work dynamics: Study

Amidst these evolving dynamics, numerous organisations struggle with antiquated and disjointed payroll procedures that struggle to align with the requirements of today's workplace.
Global payroll systems fail to keep up with changing work dynamics: Study

The evolution of the workforce in recent years, characterised by the rise of hybrid and remote work models, has prompted a significant shift in the priorities of payroll leaders. With employee experience taking centre stage and global talent acquisition becoming increasingly prevalent, the need for efficient and effective global payroll systems has never been more critical. 

However, despite these changing dynamics, many organisations find themselves grappling with outdated and fragmented payroll processes that fail to keep pace with the demands of the modern workplace.

In response to these challenges, payroll leaders are advocating for a paradigm shift towards unified global payroll solutions. These solutions offer a holistic approach to payroll management, streamlining processes, enhancing accuracy, and ultimately improving the employee experience. Yet, despite the clear benefits they offer, the adoption of such solutions remains limited, with many organisations still mired in a complex web of disparate systems and vendors.

A recent study commissioned by Deel and conducted by Forrester Consulting sheds light on the current state of global payroll systems and the challenges faced by organissations in this regard. 

The study surveyed 322 global decision-makers responsible for their organisation’s global payroll strategy, revealing a number of key insights into the prevailing trends and pain points in the industry.

One of the most pressing issues highlighted by the study is the underestimated cost of managing global payroll. While organisations anticipate an increase in payroll costs, many fail to fully grasp the scope of these expenses, overlooking hidden costs such as poor employee experience, compliance risk, and limited data analysis capabilities. As a result, organisations are left with an overly complex and costly payroll ecosystem that hampers operational efficiency and employee satisfaction.

Furthermore, the study underscores the negative impact of fragmented payroll systems on the employee experience. Inefficient processes, payroll errors, and slow vendor support contribute to frustration among employees, undermining morale and productivity. This, in turn, poses significant challenges for organisations in their efforts to attract and retain top talent in an increasingly competitive global market.

Another key finding of the study is the prevalence of multiple payroll vendors and systems within organisations, further complicating payroll management and driving up costs. With an average of six payroll tools being used, organisations are faced with the daunting task of navigating a fragmented and disjointed landscape, leading to inefficiencies and errors.

In light of these challenges, payroll leaders are increasingly turning to unified global payroll solutions as a means of addressing their most pressing concerns. By consolidating payroll processes into a single platform, organisations can streamline workflows, reduce errors, and improve vendor support, ultimately enhancing the employee experience and enabling more effective global talent management.

Looking ahead, it is clear that the future of payroll lies in unified and integrated solutions that are capable of meeting the evolving needs of the global workforce. As organisations continue to navigate the complexities of the modern workplace, investing in robust and scalable payroll systems will be essential to driving operational efficiency, ensuring compliance, and fostering a positive employee experience. 

By embracing this shift towards unified global payroll solutions, organisations can position themselves for success in an increasingly competitive and dynamic business environment.

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Topics: Compensation & Benefits, HR Outsourcing, #HRCommunity, #HRTech

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